Security deposit when registering as a VAT taxpayer

The PiS government has introduced a new fiscal instrument to combat tax fraud, with the registration termination starting in 2017.

The payment of a security deposit for the declaration of a company subject to VAT is due from those companies which are at risk of not fulfilling their tax obligations. The head of the respective tax office, at which the registration is made, must carry out a risk assessment. To do so he has to check among other, if the company or person which want to be registered for VAT purposes, stays in contact with companies or persons which have tax arrears or which were cancelled from the VAT register. In addition, the history is examined as a taxpayer and the case of whether a so-called virtual office is operated as a business seat, or whether a tax prosecution has already been initiated against the company or the person.

Depending on this risk assessment, the head of the tax office may require the security of a deposit between 20,000.00 PLN and 200,000.00 PLN when registering.